Who Pays for Vehicle Damage After an Alabama Car Accident?

Motor vehicle accidents can result in accident-related medical bills, property damage, and lost wages, leaving accident victims wondering how they will pay for these costs. Many are anxious to get back on the road after a crash, but their vehicle may need extensive repairs. Who pays for vehicle damage after an Alabama car accident largely depends on the circumstances surrounding the automobile accident and the relevant insurance coverage.

An experienced accident lawyer from Siniard Law, LLC can review the circumstances of your crash and explain your legal rights and options. If you decide to pursue a personal injury claim, we can pursue maximum compensation on your behalf. Contact us today for your free legal consultation.

Is Alabama a No-Fault State for Car Insurance?

Most states follow a fault-based or no-fault system to determine who pays for car repairs after auto accidents. In fault-based states, fault is determined, and the party responsible for the crash is responsible for paying for accident-related medical treatment, lost wages, and property damage. This is usually done by filing a claim with the at-fault driver’s insurance company.

In no-fault states, accident survivors turn to their auto insurance provider for coverage, regardless of fault. In some circumstances, such as if they suffer serious injuries or damages that exceed a certain threshold, they may be able to file a claim against the at-fault driver.

So, is Alabama a no-fault state? No. Alabama is a fault state. Under Alabama’s fault-based insurance system, the person responsible for the crash is responsible for paying for the accident-related costs, including car repairs. This is usually accomplished by filing a claim with the at-fault driver’s liability insurance coverage.

How Is Fault Determined?

Because of Alabama’s fault-based insurance laws, determining responsibility for the crash is critical to securing fair compensation. Car accidents are based on the legal theory of negligence, which requires showing how the at-fault driver broke the law, failed to follow traffic laws, or did something else to cause the crash.

After you file an insurance claim, an insurance adjuster is assigned to the case. The adjuster conducts an accident investigation. This may involve reviewing the police report, witness statements, and statements the drivers made during the accident. The adjuster may also view the vehicles involved in the accident for property damage and take pictures of this damage.

Insurance company investigations can sometimes be inadequate. Insurance companies want to minimize the value of accident claims to protect their profitability. Therefore, adjusters may use bad-faith insurance tactics to try to minimize the value of the claim or deny compensation claims. An accident attorney can conduct an independent investigation to gather additional evidence to support your accident property damage claim, which may include:

Interviewing witnesses
Taking pictures of the accident scene
Collecting traffic camera footage
Downloading information from your vehicle’s event data recorder
Issuing subpoenas for cell phone records
Reviewing collision repair reports
Requesting medical records
Hiring accident reconstruction experts

This thorough investigation can help with the claims process and support your demand for fair compensation.

The Role of Insurance

Most car accident cases can be resolved through auto insurance claims. Understanding the various types of policies that may be in place – either through your own auto insurance or the at-fault driver’s – can be the key to a successful insurance claim. Your personal injury lawyer can review your insurance policy to determine applicable coverage.

Various parts of your auto insurance policy may include:

Liability insurance – Liability insurance pays for the damages you cause to someone else through your negligence. It protects your personal assets so you don’t have to pay out of pocket for damages you cause. Liability insurance is mandatory in Alabama.
Collision insurance – Collision insurance covers damages to your vehicle caused by an accident involving another vehicle or stationary object, regardless of fault. It pays to repair or replace the vehicle. If you use your collision insurance to cover damages someone else’s negligence caused, your collision insurance carrier can subrogate the claim, pursuing the at-fault driver for the costs they paid to you.
Comprehensive insurance – Comprehensive insurance covers other types of property damage, not from a collision, such as from theft, fire, flood, hail, or an animal.
Gap insurance – Gap insurance covers the difference between your vehicle’s fair market value and the amount you owe on a car loan.
Uninsured motorist coverage – Uninsured motorist (UM) coverage is part of your own auto insurance policy. It covers accident-related expenses when an uninsured driver causes the accident.
Underinsured motorist coverage – Underinsured motorist (UIM) coverage is part of your own auto policy that applies when your damages exceed the amount of the at-fault driver’s liability limits.
Medical benefits – Medical benefits coverage pays for reasonable and necessary medical expenses or funeral costs for you and other individuals you have listed on your policy, up to the auto insurance limits you decide. This can help you pay health insurance deductibles, copayments, and other out-of-pocket medical expenses.
Family compensation – Family compensation covers necessary medical, confinement, and death benefits for you or relatives injured or killed in an accident, regardless of fault.
Rental benefits – This type of insurance covers rental car costs so you can have a replacement vehicle while your vehicle is being repaired.

Insurance adjusters play a decisive role in evaluating personal injury claims. They can determine the cost of vehicle repairs, the reduced value of a vehicle after repairs, and the fair market value of a vehicle that is considered a total loss, thereby controlling the potential compensation you recover for your accident property damage claim.

The Insurance Claim Process

Knowing the steps involved in the accident insurance claims process is helpful. This process begins at the accident scene. You should call 911 to report the accident. A law enforcement officer may respond to the scene and prepare an official accident report.

While waiting for law enforcement, ask the other driver for their information, including their name, contact information, vehicle information, driver’s license number, and liability insurance provider information. Ask witnesses for their names and contact information.

If you have a camera or phone with you, take pictures of the accident scene, including:

Close-ups and wide shots of the accident scene
Cross streets and traffic signs
Nearby traffic lights
Damage to the vehicles involved in the accident and any other property damage
Skid marks, broken car parts, and road debris
Conditions of the road and weather
Your injuries

Seek medical attention immediately so your accident injuries can be promptly diagnosed and treated. Keep all your medical records pertaining to the accident.

Contact the insurance company for the at-fault driver to initiate the car accident claim process. Report the accident to your insurer, too. When the accident report has been filed, request a copy of it. Provide this copy to the auto insurance companies.

An accident attorney can assist you with all of the steps involved in the claims process, including:

Gathering and preserving evidence at the scene of the accident
Providing documentation to prove liability
Documenting your injuries, the damage to your vehicle, and your vehicle’s fair market value
Handling communication with insurance companies
Preparing a demand letter that sets out the amount of compensation you expect to receive that fairly compensates you for the specific losses you sustained, including for property damage, medical expenses, out-of-pocket expenses, and pain and suffering
Providing requested information to the insurance companies
Accessing your medical records and carefully selecting relevant documentation to share with the insurance company
Negotiating for maximum compensation

Will You Be Reimbursed for Car Repairs?

You may be able to have your car repairs paid for by the auto liability insurance for the at-fault driver. However, if you choose to use your own automobile insurance coverage or pay out of pocket for your car repairs, you may be able to be reimbursed from the at-fault driver’s liability policy. You will need to provide documentation of the accident expenses you paid, reports from the body shop, and other requested information.

What Happens When the At-Fault Driver Is Uninsured?

Alabama law requires all drivers to carry liability insurance in at least the following amounts:

$25,000 for bodily injury to one person
$50,000 for bodily injury to more than one person
$25,000 for property damage

In Alabama, it is illegal to drive a vehicle without these minimum amounts. Doing so can result in a fine of up to $500 for a first-time offense and subject the uninsured driver to personal liability in the event of a crash. Despite this law, the Insurance Information Institute estimates that 14% of Alabama drivers are uninsured.

If an uninsured driver is responsible for an auto accident or you are a hit-and-run victim, you may be covered under your uninsured motorist coverage. Alabama insurers are required to offer this type of coverage when selling auto insurance policies, and you should have it as part of your auto insurance plan unless you expressly rejected it in writing.

Our legal team can also investigate if it is worth pursuing an accident lawsuit against the at-fault driver or anyone else who may have been legally responsible for the accident, such as the owner of the vehicle if different from the driver.

What If the Damage to Your Car Exceeds Coverage?

Many drivers choose to only purchase the minimum amount of insurance required by state law rather than pay for additional car insurance coverage. This keeps their insurance costs low. However, if you suffered accident injuries, you may find that your expenses easily surpass the auto insurance coverage limits for the at-fault driver’s liability policy. You may be able to tap into your medical expenses coverage or family compensation benefits to pay for your additional medical expenses.

For property damage that exceeds the $25,000 threshold, you may be able to use your collision or gap insurance if you have them. If you don’t, you may be able to use your underinsured motorist coverage to pay for these damages. To do this, you file a UIM claim with your own insurance company.

An experienced attorney can review your auto insurance policy to explain your coverage. We can also determine if more than one driver is at fault for your injuries.

Alabama’s Contributory Negligence Rule

One complexity of car accident claims in Alabama is its strict contributory negligence rule. Under this rule, if you are found to be even 1% at fault for the accident, you can be barred from recovering any compensation. Due to this rule, many insurance companies try to shift blame to accident victims. Insurance claim denials regarding shared fault are common, so you may need a personal injury lawyer to fight back.

Contact Our Personal Injury Lawyers for Legal Representation

Alabama’s accident compensation laws can be complicated. The legal team at Siniard Law, LLC is here to guide you through the claims process. We can handle your claim while you focus on your recovery. Call us today for a free consultation.